WFE wades into clearing 'skin in the game' debate

Trade body warns there should be no standard skin in the game requirements

The World Federation of
Exchanges (WFE) piled on Wednesday into the ongoing clearing
house recovery and resolution debate, warning that clearers
should retain flexibility over their risk management and there
should be no standardised 'skin in the game'
requirements.

In a position paper
released on Wednesday, the trade body warned a prescriptive
'one-size-fits-all’ approach to central
counterparty (CCP) oversight is not the most effective way to
manage risk in the system.